It didn’t get a great amount of fanfare this week, but the NBA, as pointed out by my colleague Tom Richardson, took a bold first step on the content side this past week, starting to offer a micropayment plan of $.99 for fans who sign up for an account where they can opt in to watch only the fourth quarter of games. While some teams like the Knicks have been selling sponsorships for the last five minutes of games to partners like Foxwoods for several years, and elements of baseball games (seventh inning stretch, final out) have been monetized for years through traditional broadcasts (to say nothing of the red zone in the NFL), realizing that there is money being left on the table for fans who can only grab game ends, or who may only want to watch when something is building, is a big step for traditional rights holders.
Now we have seen the atomization of all forms of media start to come into play for a while now, but the atomization of sports media… what happens when the data and the highlights become the experience vs. the entire game…is certainly new and will be coming probably more and more.
There are a few automated platforms, Thuuz being one, that work with large media companies, and in some cases leagues, to customize not just highlights, but to bring the consumer up to date with all the goings on in a game right to the point where they join the broadcast on whatever device they choose; the phrase “Catch Up To Live,” is becoming more and more commonplace, and will fall into the atomization of sports media as we move forward.
For the leagues, now capturing consumer data for fans who cannot sit and use Game Pass or League Pass but who want their customized highlights and just the outcome, is a different tact, but one that the NBA is showing, could lead to another revenue stream, albeit in micropayments. If it works, will MLB sell seventh inning stretch on, how about NASCAR for the final five laps? In other sports like soccer and even the NFL (where the red zone has worked so well) it may be a little more difficult, but the longer season; NBA and MLB especially, seem ripe for atomization.
Now is it sellable? As mentioned broadcasters have sold final five minutes, so attaching a brand to a live stream or a look in for just the final 12 minutes seems to have added value, and getting the data from those now micro consumers of games will give those holding the data…the broadcaster, the leagues…more opportunities to target and monetize.
What’s the downside? Cannibalizing the experience of the full broadcast? If the short term consumer is not watching already, then this is found revenue. Hurting the in game experience and ticket sales? Teams are looking more and more in enhancements for in game only that will keep the fan experience unique and one of a kind.
From a revenue perspective, from a fan engagement perspective and from an excitement perspective the micro buy is a next adjustment coming, with a market price now set to see if it works. If it doesn’t, there is no downside. If it scores, the NBA again has led the way.
